YAMATO KOGYO (5444) Q4 2025 earnings summary

Executive summary

• Net sales rose 2.9% year-over-year to 1,682 billion yen, but profit attributable to owners of parent fell 54.5% to 31.8 billion yen due to impairment losses in the Middle East and challenging Asian markets.

• U.S. operations remained a stable profit source, while the new Indonesian business contributed positively to consolidated results.

• The company completed the acquisition of PT Garuda Yamato Steel in Indonesia, adding a new reportable segment.

Financial highlights

• Operating profit declined 33.5% year-over-year to 114 billion yen; ordinary profit dropped 45.2% to 54.4 billion yen.

• Comprehensive income declined 25.3% to 78.97 billion yen.

• Cash flows from operating activities were 71.0 billion yen, down from 80.9 billion yen; investing activities used 85.7 billion yen, mainly for the Indonesian acquisition.

• Cash and cash equivalents at year-end decreased to 124.0 billion yen.

• Equity in earnings of affiliates dropped sharply due to Middle East impairment losses.

Outlook and guidance

• FY2026/3 forecast: ordinary profit expected to rise 2.9% year-over-year to 56.0 billion yen, but operating profit projected to fall further to 60 billion yen.

• Market conditions expected to remain challenging globally, except for the U.S., with continued price competition from Chinese steel.

• Profit declines anticipated in Japan, Thailand, and Indonesia segments; U.S. affiliate expected to maintain strong profits.

• Withdrawal from the Middle East business is in final negotiation stages.